2 days ago
Recent survey shows the fear Americans have over inflation decreased last month
SPRINGFIELD, Mass. (WWLP) – The fear Americans have over inflation decreased last month, according to a recent survey. This being prompted by the president's decision to back off on his tariff proposals.
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With tariff threats easing and reports of trade negotiations heating up, this survey by the Fed shows people are starting to worry less about inflation.
In the New York Federal Reserve's Survey of Consumer Expectations, inflation expectations declined in May. This comes after surging higher in March and April over concerns about tariffs. Right now, inflation stands at 2.3%.
'It's good, because the economy is struggling as it already is. So it's good for us to see those numbers dwindle,' said Angel Amaro of Springfield.
The improving expectations come as the tariff policy has changed. Initial tariffs were set at 10 percent on all US imports, and dozens of nations faced reciprocal duties. President Donald Trump later backed off on the tariffs, opting for a 90-day negotiation period that ends in July.
While inflation is coming down, AIC economics professor John Rogers explains it's still above the Fed's 2% annual target rate. 'It's sort of that last mile is difficult to get to, but it's it's going in the right direction,' said Rogers.
The survey showed that expectations dipped across most price groups, but saw food prices rising to 5.5 percent over the next year. Rogers says the survey also showed people are optimistic about the job market.
'They feel that the number of people who feel that their jobs are at under threat or at stake is going down. So that's good news. So that gives people confidence if they're confident, they go out and spend money, it's consumer spending that keeps the economy humming along,' added Rogers.
And Rogers noted that the Bond market is another area for people to question, asking themselves whether the US can service all of its debt. He says it's up to $37 trillion, and it's growing at almost $2 trillion every year.
The survey also shows increased gas prices easing to just 2.7 percent. Medical care, college education, and rent increases were also lower every month.
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